Galaxy is set to launch a $100 million hedge fund in the first quarter, targeting opportunities across both rising and falling cryptocurrency prices. The strategy will take long and short positions in digital assets as well as traditional equities linked to financial infrastructure.
Up to 30% of the fund’s capital will be allocated directly to crypto tokens, with the remainder invested in financial services stocks affected by regulation, blockchain adoption, and technology trends. The fund has secured $100 million in commitments from family offices, high-net-worth individuals, and select institutional investors, with Galaxy expected to provide a seed investment.
The initiative comes as crypto markets show increased volatility following a recent pullback from prior highs. Galaxy executives have characterized the environment as shifting away from an up-only cycle, reinforcing demand for more flexible trading strategies that can adapt to changing macro and regulatory conditions.